Kinder Morgan (KMI) has agreed to a $640 million deal for Outrigger Energy II's North Dakota gathering and processing G&P network. (Source: Shutterstock)
Kinder Morgan (KMI) has agreed to a $640 million deal for a North Dakota gathering and processing (G&P) network currently owned by Outrigger Energy II, the company announced Jan. 13.
KMI subsidiary Hiland Partners Holdings LLC will make the purchase, which includes a 270 MMcf/d processing plant and a 104-mile rich gas gathering header pipeline with 350 MMcf/d capacity. The network connects the Williston Basin to KMI markets.
The G&P is backed by long-term contracts and commitments, Kinder Morgan said in its announcement. KMI said the acquisition has an adjusted EBITDA of about 8X on a full-year basis.
KMI intends to fund the transaction with cash-on-hand and short-term borrowings and expects to close the deal by the end of March.
“We’re pleased to be integrating this complementary system with our existing Hiland gas assets to aggregate additional supplies from the Bakken,” said Tom Dender, KMI natural gas midstream president.
Kinder Morgan has been expanding its natural gas footprint nationwide. In December, the firm announced a $1.4 billion FID for the Mississippi Crossing Project, which increased its presence in the Southeast.
Recommended Reading
Diamondback Energy Closes $4.1B Double Eagle IV Acquisition
2025-04-02 - Diamondback Energy Inc. closed on its approximately $4.1 billion deal to buy EnCap Investments’ Double Eagle IV, adding approximately 40,000 net acres in the Midland Basin to its portfolio.
CenterPoint Energy Completes NatGas Pipeline Sale to Bernhard
2025-04-01 - CenterPoint Energy Inc. has closed on a sale of natural gas distribution utilities in Louisiana and Mississippi to Bernhard Capital Partners.
Ring Energy Closes Central Basin Platform M&A from Lime Rock
2025-04-01 - Ring Energy added 17,700 net acres and 2,300 boe/d of production in the Central Basin Platform through an acquisition from Lime Rock Resources IV.
Boaz Energy Completes Sale of PermRock Properties to T2S
2025-04-01 - Boaz Energy II has completed the sale of PermRock Royalty Trust’s underlying oil and gas properties to T2S Permian Acquisition II LLC.
TG Natural Resources Wins Chevron’s Haynesville Assets for $525MM
2025-04-01 - Marketed by Chevron Corp. for more than a year, the 71,000-contiguous-net-undeveloped-acreage sold to TG Natural Resources is valued by the supermajor at $1.2 billion at current Henry Hub futures.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.